Parent and Subsidiary Corporations form an affiliated group. Last year, the initial year of operation, Parent and Subsidiary filed separate returns. This year. the group files a consolidated return. $$\begin{array} { | l | r | c | }
\hline { \text { Taxable Incame } } \
\hline & { \text { Last } } & \text { Current } \
\hline \text { Parent } & ( \$ 16,000 ) & \$ 20,000 \
\hline \text { Subsidiary } & 10,000 & ( 21,000 )\
\hline
\end{array}$$ How much of the Subsidiary loss can be carried back to last year?
A) $0
B) $1,000
C) $10,000
D) none of the above

Question

Parent and Subsidiary Corporations form an affiliated group. Last year, the initial year of operation, Parent and Subsidiary filed separate returns. This year. the group files a consolidated return. $$\begin{array} { | l | r | c | } 
\hline  { \text { Taxable Incame } } \
\hline &  { \text { Last } } & \text { Current } \
\hline \text { Parent } & ( \$ 16,000 ) & \$ 20,000 \
\hline \text { Subsidiary } & 10,000 & ( 21,000 )\
\hline
\end{array}$$ How much of the Subsidiary loss can be carried back to last year?
A) $0
B) $1,000
C) $10,000
D) none of the above

Quizplus · Accepted Answer

The Answer of Parent and Subsidiary Corporations form an affiliated group. Last year, the initial year of operation, Parent and Subsidiary filed separate returns. This year. the group files a consolidated return. $$\begin{array} { | l | r | c | } 
\hline  { \text { Taxable Incame } } \
\hline &  { \text { Last } } & \text { Current } \
\hline \text { Parent } & ( \$ 16,000 ) & \$ 20,000 \
\hline \text { Subsidiary } & 10,000 & ( 21,000 )\
\hline
\end{array}$$ How much of the Subsidiary loss can be carried back to last year?
A) $0
B) $1,000
C) $10,000
D) none of the above

Parent and Subsidiary Corporations Form an Affiliated Group How Much of the Subsidiary Loss Can Be Carried Back